SF 5283

Introduction - 94th Legislature (2025 - 2026)

Posted on 05/13/2026 09:08 a.m.

A bill for an act
relating to taxation; sales and use; authorizing the city of La Crescent to impose
a local sales and use tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin CITY OF LA CRESCENT; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of La Crescent may impose by ordinance a sales and use tax of up to ..... percent for
the purposes specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax authorized
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin Notwithstanding section 297A.99,
subdivision 2, paragraph (d), the revenues derived from the tax authorized under subdivision
1 must be used by the city of La Crescent to pay the costs of collecting and administering
the tax and to pay or finance the costs of up to $4,000,000 to design, construct, and equip
improvements and upgrades necessary to renovate the La Crescent regional ice arena,
including money for replacement of the existing ice system and the installation of a rooftop
solar energy system, plus costs of issuance and debt service on associated bonds.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of La Crescent may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects
authorized in subdivision 2 and approved by voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed $4,000,000, plus an amount applied to the
payment of the costs of issuing the bonds. The bonds may be issued as general obligations
of the city and may be paid from or secured by any money available to the city, including
the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) ..... years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any money remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax authorized under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of La Crescent and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end